The cryptocurrency market has gone through several phases since its boom with Bitcoin (first generation) and the rise of Ethereum as an expanded network (second generation). Now, the third generation of this universe focuses on even more complete projects, such as the Algorand platform and its native ALGO token.
One of the most successful blockchain projects in recent years, Algorand has already surpassed $10 billion in market capitalization and ranks as one of the most valuable cryptocurrencies in the global ranking.
Going head-to-head with Ethereum, the network enables faster and cheaper transactions, as well as greater scalability. Want to know more about the project and find out if it’s worth investing in SOMETHING? Check out all the information below!
What is the Algorand network?
Algorand is a decentralized blockchain that follows the same concepts as Ethereum, but with a more scalable, secure and faster proposal, and is used by developers and enthusiasts of DeFi projects (decentralized finance) .
Its infrastructure was created using open codes, while its projects are driven by validations in smart contracts. This means that there is complete freedom for members to actively participate in building and maintaining the network.
Algorand encourages an open, borderless economy where everyone can participate in decentralized projects. To have active voice, however, the user needs to have ALGO cryptos under guardianship ( stake ), which serve as a governance token for participation in the network.
Another feature of Algorand is that it uses the proof of stake mechanism , which optimizes transactions through self-validation, unlike Bitcoin (BTC), which requires mining (proof of work).
How did Algorand come about?
The Algorand project was created in 2019 by Silvio Micali, a renowned professor of computer science at MIT and winner of the 2012 Turing Prize. With extensive experience in the field of digital assets and blockchain, the founder had the help of several experts and even from former Ethereum members to improve the protocol to be released.
Today, the network is maintained by the Algorand Foundation, a non-profit organization that works together with other users and developers to keep the community active.
The token ALGO
ALGO is Algorand’s native cryptocurrency that can be used to protect the network and as a currency of exchange between users. In addition, it is also indirectly sold by exchanges as an investment option for crypto market enthusiasts.
By keeping the token in their wallets, Algorand users participate in a reward program for active participation within the platform. In addition, ALGO is essential for the structure to remain constantly updated and evolving.
Algorand Foundation
The Algorand Foundation is a not-for-profit organization that supports and promotes the Algorand ecosystem. The foundation was created in 2019 and is responsible for guiding the development of the network’s technology, as well as promoting education, adoption and innovation within it.
In addition, the company is responsible for managing the distribution of the native token and holding regular auctions to ensure fair distribution of the token among the community and network supporters. The Algorand Foundation also supports, through funding, projects and developers who want to build applications and solutions on Algorand.
What do you need to know before investing in Algorand (ALGO)?
Interested in investing in SOMETHING ? Before that, it is important to better understand how the whole project works, which involves several fronts and expectations for the future of the crypto sector.
We separate the main characteristics of the Algorand project, as well as its token, so that you can evaluate the most promising features it has to offer. Check out:
Focus on DeFi
The Algorand ecosystem is the foundation of several dApps (decentralized applications), DeFi protocols and non-fungible tokens (NFT). This sees both the token and the network appreciate as new developers are attracted to the platform, especially those migrating from Ethereum in search of more scalable solutions.
governance token
Each user who has ALGO under guardianship can actively participate in polls and updates in the Algorand ecosystem. In addition, the validation process is done by proof of stake, requiring greater and constant participation. This cycle makes the crypto stable in the market and also for its development flow.
Adoption and application
In addition to crypto enthusiasts, Algorand has been embraced by government institutions and large technology companies as a way to improve financial solutions and modernize the way citizens use traditional tools. El Salvador, for example, chose Algorand to help develop its own blockchain infrastructure.
Volatility
Despite all the promise surrounding Algorand, it is worth remembering that its ALGO token remains a highly volatile asset and can fluctuate as the market adjusts. Therefore, it is important to understand that the investment must be thought for the long term.
carbon negative company
Algorand is a carbon negative company , which means that its network removes more carbon emissions than it produces. Its blockchain is designed to be ecologically sustainable, with a focus on energy efficiency and minimizing carbon emissions.
Is it worth investing in Algorand?
Algorand is a relatively new blockchain with innovative technology and a focus on environmental sustainability. The network is capable of processing transactions quickly and efficiently, with a secure and decentralized consensus algorithm. Therefore, it has drawn the attention of the crypto market and large companies and financial institutions.
However, as with other cryptocurrencies, it is important to remember that this is a highly volatile market. The ALGO token price can fluctuate significantly in a short period of time due to factors such as market news, technological developments, regulatory changes and global events.
If you’re considering investing in ALGO, it’s important to do your own research, weigh the potential risks and benefits, diversify your portfolio and always only invest what you can afford to lose.